EmailEmail
PrintPrint
How consumers will fare in satellite radio deal
Tuesday, August 12, 2008

Howard Stern fans who were holding out on buying a Sirius Satellite Radio subscription because they liked a lot of the programming on rival XM won't have to make that wrenching decision anymore.

The combined company created by the July 29 merger between the two -- now called Sirius XM Radio -- starts out with 18.5 million subscribers and will offer 300 channels.

XM Satellite radio launched in 2001, and Sirius followed in 2002. Both offered listeners an array of commercial-free music formats and a diverse choice of news, talk and sports programming.

The FCC set conditions for approval of the merger that were designed to benefit old and new subscribers, but there's still lots to be done to get specific content to subscribers who want it.

Current subscribers won't have to buy new satellite radio receivers, but anyone buying an a la carte package will need an a-la-carte-capable receiver, expected to be available around the time Sirius XM rolls out its new subscription packages. That's scheduled to be within the three months following the merger date, or by the end of October.

There will be a three-year cap on subscription prices.

In addition to the current subscription plans, which will still be available, subscribers will be able to choose among a la carte, best-of-both and cheaper customized packages. The new company is also required to set aside channels for minority and public interest programming.

"By offering more compelling packages and the best content in audio entertainment, we are well positioned for increased subscriber growth," Sirius XM Radio CEO Mel Karmazin said when the merger approval was announced. "We also believe that the completion of the merger will eliminate any confusion that has been lingering in the marketplace."

Here are some consumer-oriented details on the new packages:

• A La Carte Programming: Subscribers can choose either 50 Sirius channels or 50 XM channels. Extra channels can be added for 25 cents a month each, with higher fees for premium channels. Sirius XM hasn't announced what the premium channels will be or what they'll cost but says the total fee for a la carte subscriptions will not exceed $12.95 per month. Price: $6.99/month for 50 channels.

In a second a la carte offering, Sirius customers can choose from 100 channels of Sirius programming and a yet-to-be announced selection of the best of XM's programming. In turn, XM subscribers can choose from 100 XM channels and a to-be-announced selection of the best of Sirius programming. Price: $14.99/month.

• Best of Both Programming: XM and Sirius subscribers will continue to receive their existing service, along with selected programming from the other company, including some yet-to-be-announced premium channels. The company hasn't announced what channels will be included in the Best of Both package. Price: $16.99/month.

• Mostly Music, or News, Sports and Talk Programming: Pre-selected packages of mostly music, including popular music channels, or news/talk and sports programming. Price: $12.99/month.

• Discounted Family-Friendly Programming: Family friendly programming from either Sirius or XM with a $1 per month discount compared to the standard subscription price. Price: $11.95/month. Packages of family friendly programming from the combined companies will offer a $2 per month discount from the Best of Both package. Price: $14.99/month.

Adrian McCoy can be reached at amccoy@post-gazette.com or at 412-263-1865.
First published on August 12, 2008 at 12:00 am
Featured Rentals